ADTRAN Holdings Reports Q2 Revenue $265.068 Million, Announces Earnings Guidance for Q3 2025

ADTRAN Holdings, Inc. reported Q2 2025 earnings with revenue of $265.068 million, a 5.5% increase YoY. The company's net loss widened to $43.8 million, compared to a net loss of $29.4 million in Q2 2024. Despite revenue growth, higher costs contributed to the deeper loss. Adtran Holdings provided earnings guidance for the third quarter of 2025.

ADTRAN Holdings, Inc. (NASDAQ: ADTN) has reported its Q2 2025 earnings, showing a revenue increase of 5.5% year-over-year (YoY) to $265.068 million. However, the company's net loss widened to $43.8 million, compared to a net loss of $29.4 million in Q2 2024. Despite the revenue growth, higher costs contributed to the deeper loss. The company provided earnings guidance for the third quarter of 2025 [1].

Goldman Sachs Group, Inc. has bolstered its position in ADTRAN Holdings, Inc. by acquiring an additional 1.49% of voting rights, bringing its total stake to 10.05%. The acquisition was executed through the purchase of 119,087 shares and the exercise of convertible instruments. The ultimate controlling person or legal entity behind this acquisition remains undisclosed [2].

ADTRAN's recent performance has been notable, with shares surging about 42.8% over the past year, significantly outperforming the S&P 500's 13.6% return. This growth is driven by rapid revenue expansion, positive free cash flow, and renewed investor interest in the telecom-equipment sector. The company's Q2 2025 revenue climbed 17.3% to $265.1 million, fueled by fiber upgrades, network modernization, and a shift away from riskier suppliers. Management expects Q3 revenue to range between $270 million and $280 million, with non-GAAP operating margins of 3% to 7% [1].

Despite its improving financials, ADTRAN still faces challenges, including cyclical capital expenditure risks, profitability execution, and competitive pressures from industry giants like Cisco, Nokia, and Ericsson. The company's net debt to EBITDA ratio is 2.44x, higher than the market average, and interest coverage is thin [1]. Furthermore, ongoing trade disputes and supply chain issues pose additional risks.

Goldman Sachs' increased stake in ADTRAN suggests confidence in the company's growth prospects and potential for profitability. However, the high volatility of ADTRAN's stock and its ongoing losses on a GAAP basis may present risks for investors. As the company approaches its Q3 2025 earnings report, scheduled for early November 2025, and potential broadband infrastructure grants, investors will be closely monitoring ADTRAN's progress [1].

References:
[1] https://www.ainvest.com/news/goldman-sachs-group-acquires-1-49-stake-adtran-holdings-2508/
[2] https://finimize.com/content/adtn-asset-snapshot